Your Business Management Software System is < 60% Efficient

Top Four Areas of Inefficiency and Tips for Squeezing More Out of What You Already Have

The best run businesses know that small continuous improvements make them incrementally better each day. They identify the sources of inefficiency, invest in consulting, listen to feedback and hold users accountable for implementing and controlling processes.

Your business management system is not throw-and-go, it requires maintenance, documentation and change to really build momentum. So what are some common areas you could improve on?

Information Leaks

Definition: Users build their own separate storage areas for data commonly called “Information Silos". This includes Excel spreadsheets and external software programs.

Maybe a user is frustrated trying to achieve some sort of end goal they feel they can’t achieve in the current system. They invent a set of spreadsheets that live on their desktop to store information.

This process prevents information sharing between departments and users. It also limits the ability for reporting and traceability within the system. The user becomes the sole owner of a particular process and information becomes stale very quickly.

Leaks also take the form of external non-integrated software. This parallel silo of information has the same effect. It’s not easily reportable or integrated to the main database and it causes a dead-end effect.

Solution: If you want to improve efficiency, perform a process audit and observe the process your users go through. Ask them to explain what they are responsible for and how they achieve it. You will be able to uncover these silos quickly as the process unfolds.

You can’t blame the user if they have not received training or do not have an established and clear process. They are trying to maximize their day-to-day and maybe don’t understand how to achieve the end goal they seek. Work with them to find a great process solution inside the current system.

Identity the silos and use the next factors to help eliminate them

Process Malfunction

Description: Leaving users to their own devices causes an inconsistent and unpredictable set of inputs in your system. Inconsistent data and undocumented processes produce poor data consistency and in turn poor reporting. “Garbage in, garbage out".

“This is just not clear to me and I need to get it done, I don’t want to bother anyone so I will just make up my own way to do it.” We don’t want to remove all innovation, but the innovation needs to be within the spirit of the established framework. Cutting corners, inventing unnecessary processes or missing data all cause misalignment with departments which then leads to a log jam in management reporting.

This also exists in the form of overly complex legacy processes. You may be bending over backwards to do things the way you used to do them, for no other reason than they were the way you used to do them!

Solution: Clearly map out your processes visually using flowcharts and document them step by step in a procedure guide to reinforce the flow of data.

Have your employees stand in a circle and grab a folding file. Ask your team members to take turns with the file from start to finish describing their role in the chain of the process and handing the file to the next person in the chain. This not only reinforces the process, but is a great tool for diagnosing issues.

When mapping out your processes, it is useful to get the opinion of an outside consultant. They can ask objective questions you might not have thought about. This is especially important if you are stuck doing things the legacy way, why not work with your system and not against it. There are often simpler ways of doing what you want in the new system than how you are doing them today.

Functionality Fubar

Description: When you are doing a task and you ask yourself, “there has to be a better way to do this?!” Maybe you are right, missing functionality can cause a host of issues stemming from workarounds, alienated user groups and administrative time wasting.

Sometimes there is more under the hood than you can see from glancing at the menu bar. Workarounds are often necessary, but they should not be so heinous that they cause immense amounts of additional administrative time.

Solution: Take time to explore the system user manuals, online training and system options. If you have access to a test environment, try the process out and take some chances with buttons you wouldn't normally push.

Search online for add-ons or additional modules, there might be something out there that could be exactly what you are looking for. The investment might easily pay for itself in ROI if the pain is intense enough.

Ask a consultant, they often hear the same questions over and over and they can provide simple and creative ways to solve the issue.

Training / Empowerment Slowdown

Description: Users flailing about in a nonsensical flurry of fumbling folly. Basically, “you just don’t know what the heck you are doing” is all it comes down to. Alternatively, users might not have access or the permission to handle simple tasks on their own.

I’m continually amazed by the steps some users will take to accomplish a simple goal. There is a fluidity and ease with which an experienced and empowered user navigates a system. Not being given the resource of training or time to learn causes incredible amounts of waste.

Unnecessarily blocking or simply not cross-training users also becomes an issue. Empowering users gives them a sense of autonomy but also helps the flow of information.

Solution: Invest in your users! “I will figure it out later” is not acceptable, schedule high-quality training times.

Mentor and cross-train your users. Sit strong users with weaker ones and have them perform each others processes in order to have a backup. Simply fostering system discussions can spread useful tips and tricks between users who might not interact daily.

Ask for resources. User manuals, online training, help guides likely exist for your system. Ask a consultant, search the internet, search YouTube for tutorials. Do a lunch and learn taught by other employees with tricks on how to get more from your system. It all leads to intelligent, fluid, empowered users!

Summary

Knowing is half the battle. You might not understand what goes into the reports you are asking for. It could be a Sisyphean epic instead of a point and click effort. Streamlining starts with asking questions and flipping stones. Ask for input, dedicate time and resources to documentation and by following my guide you will get more out of your system today!